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Technical Analysis - Financial Glossary
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Mutual Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mutual funds are investment companies whose job it is to handle their investors' money by reinvesting it into stocks, bonds, or a combination of both. Mutual funds are divided into shares and can be bought much like stocks, allowing mutual funds to have a high liquidity. Mutual funds are convenient, particularly for small investors, because they diversify an individual's monies among a number of investments. Investors share in the profits of a mutual fund, and mutual fund shares can be sold back to the company on any business day at the net asset value price. Mutual funds may or may not have a load, or fee; however, funds with a load will provide advice from a specialist, which may help the investor in choosing a mutual fund. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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